Question

Larcker Manufacturing's cost accountant has provided you with the following information for January operations. Direct materials Fixed manufacturing overhead costs Sales price Variable manufacturing overhead Direct labor Fixed marketing and administrative costs Units produced and sold Variable marketing and administrative costs is as es as es as 37 per unit 200,000 205 per unit 19 per unit 33 per unit $ 190,000 5,000 $ 8 per unit Required: a. Determine the variable cost per unit. b. Determine the variable manufacturing cost per unit. c. Determine the full absorption cost per unit. (Round your answer to 2 decimal places.) d. Determine the full cost per unit. (Round your answer to 2 decimal places.) e. Determine the profit margin per unit. (Round intermediate calculations and final answer to 2 decimal places.) f. Determine the gross margin per unit. (Round intermediate calculations and final answer to 2 decimal places.) g. Determine the contribution margin per unit. Variable cost per unit b. Variable manufacturing cost per unit c. Full absorption cost per unit d. Full cost per unit e. Profit margin per unit Gross margin per unit g. Contribution margin per unit

Answer 1

a)'	Variable Cost Per unit
	Direct Material		$          37
	Direct Labor		$          33
	Variable Overhead per unit		19
	Marketing And Admin Variable Overhead		$             8
	Variable Cost per unit		$          97
b)	Varibale Manufacturing Cost Per Hour
	Direct Material		$          37
	Direct Labor		$          33
	Variable Overhead per Hour		19
	Total		$          89
c)	Full Absorption Cost Per Unit
	Direct Material		$          37
	Direct Labor		$          33
	Variable Overhead per unit		$          19
	Fixed Mgf Overhead		$          40
	($200000/5000)
	Total		$        129
d)	Full cost per unit
	Direct Material		$          37
	Direct Labor		$          33
	Variable Overhead per unit		19
	Fixed Mgf Overhead		40
	($200000/5000)
	Marketing And Admin Variable Overhead		$             8
	Marketing And Admin Fixed Overhead		$          38
	($190000/5000)
	Total Full Cost Per unit		$ 175.00
e)	Profit Margin Per unit
	Sales Price		$        205
	Less:
	Full Cost		$ 175.00
	Profit Margin		$    30.00
f)	Gross Margin
	Sales Price		$        205
	Less:
	Direct Material		$          37
	Direct Labor		$          33
	Variable Overhead per unit		$          19
	Fixed Mgf Overhead		$          40
	($200000/5000)
	Gross Margin Per unit		$          76
g)	Contribution margin per unit
	Sales Price		$        205
	Less:
	Direct Material		$          37
	Direct Labor		$          33
	Variable Overhead per unit		$          19
	Marketing And Admin Variable Overhead		$             8
	Contribution Margin		$        108
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